Market overview: UK gilt yields rise the highest in five months on strong retail sales

LONDON (ShareCast) - 1534: UK gilt yields on long-dated UK government bonds moved up after a stronger than anticipated retail sales report, which raises expectations of a rate hike by the BoE. Yields on the 10-year UK government bond rose 11 basis points to 1.59%, the biggest rise in five months.

1230: Initial US unemployment claims decreased by 9,000 over he week ending on 21 March, to reach 282.000. Shares (Berlin: DI6.BE - news) of tech blue-chip SanDisk (NasdaqGS: SNDK - news) are plummeting 12% after the company warned on its quarterly and full-year revenues.

1005: The British pound recovered from earlier lows to shoot higher by 0.7%, past the $1.50 mark after UK retail sales for February jumped 0.7%, beating market expectations. Cable settled somewhat below the $1.50 market, last seen changing hands at $1.4949. The pound is down almost 4% against the greenback this year. Thursday's retail sales data fuels hope of an improving consumer climate in the UK thanks to better conditions in the labour market and low oil prices.

0859: Commenting on the drop in the LSE's share price, Mike van Dulken, Head (Other OTC: HEDYY - news) of Research at Accendo Markets, believes Dubai's main motivation was 'profit-taking'. After all, the LSE's shares have increased their value by a multiple of eight from their 2007 lows, he adds. "The sale is unlikely to completely derail the shares' strong uptrend," Van Dulken says.

0833: Following Saudi Arabia's use overnight of airstrikes against Houthi rebels in neighbouring Yemen a Saudi source has reportedly told Reuters that a ground offensive may now be necessary.

0832: UK stocks are lower after Saudi Arabia launched airstrikes against Houthi rebels in Yemen, leading to a 5% spike in crude futures as the perceived geopolitical risk increases. Fresnillo (Other OTC: FNLPF - news) and Randgold Resources are at the top of the leaderboard, as they benefit from the rise in risk aversion. Shares in London Stock Exchange (Other OTC: LDNXF - news) are being pummelled after Dubai's sovereign wealth fund moved to offload its 17.4% stake in the market operator. FTSE down 36.55 points to 6,954.40 points.